What is Gold Investment?
Gold is one of the most precious metals among all and regarded as the best source of investment. The reasons for invest in gold being the best investment are high liquidity and beating inflation factors. No doubt that gold price also has encountered falls but the comeback is always a great hit. Check out the Gold Rate Today First!!!
There are many forms of Gold Investment like buying gold coins, gold jewelry, gold exchange-traded funds, gold bars, sovereign gold bond schemes, etc.
If you are thinking to invest your money in Gold then you must read this article. We will cover all the important points on How to Invest in Gold India, what are the benefits, the best gold investment schemes offered by jewelers, and why gold investment is preferred so much.
How to Invest In Gold In India?
Now the most important question that arises in the head of a “would be gold investor “is- How to invest in Gold In India?
Traditionally people used to buy jewelry, gold coins, bullions, or artifacts in order to invest their money in Gold. But with time investing in Gold has modernized a bit with some new Gold investing schemes like Gold Exchange Traded Funds (Gold ETF’s), Sovereign Gold Bonds, Gold Funds, etc.
Gold ETF: In Gold ETF the gold is stored in the form of paperwork. It is similar to buying an equivalent amount of buying gold but in paper form not having it physically in your hands. It protects the stress of storing the gold and safeguards it from theft and burglary.
Gold Funds: It refers to investing your money in a gold mining company.
Documents Required For Investing In Gold
Following is the list of documents required for Gold Investment in India:
- PAN Card for more than 2 Lakhs of investment in Physical Gold
- Brokerage Account + DEMAT Account in the same firm for Gold ETF ( Exchange Traded Funds)
- KYC is required for investing in Sovereign Gold Bonds
|Gold||Gold ETFs (Exchanged Traded Funds)||Gold Funds|
|One Can Invest In Physical Funds||Purchasing a proportionate value of gold but not in physical form.||The investment is made in the form of bullions and the companies involved in gold mining.|
|No DEMAT account is not required||DEMAT Account is required||No DEMAT Account is required|
|No additional charges are imposed except the cost of physical gold||Asset management and brokerage fees are included in Gold ETF’s||A minimum charge is applied to manage the funds.|
|It always has a risk of theft and burglary involved if you are having physical gold with you.||No risks of theft or burglary as you don’t possess it in the physical form.||No risk of theft or burglary involved|
|Paperwork can be avoided while buying Physical Gold||Paperwork is required for investing in Gold ETFs.||Paperwork is required for Gold funds.|
|Market fluctuations are proportionate to the prices of gold.||Gold price directly affects that of Gold ETFs.||Gold funds are not affected by changes in the gold price.|
Top 5 Best Invest In Gold Saving Schemes in India:
These schemes are offered by top jewelers. Know about their investing working and the amount for starting investment. Based on the current market scenario the best ways to invest in Gold in India are:
1.) GRT Gold Eleven Flexi Plan
Investing in the GRT Gold Eleven Flexi plan is a great opportunity to start from a low amount that is Rs.500 monthly for 11 Months and shop for jewelry in the 12th month. This scheme is a great opportunity for savings and investment. Also, it also offers refunds in case of non-purchase after completion of tenure.
2.) Tanishq Gold Harvest Scheme
This scheme enables an investor to deposit their money under this scheme for 6-10 months. The money can be used for buying jewelry after the completion of the maturity period of the scheme with a discount of up to 75% on the value of the jewelry.
3.) PNG Jewellers Gold Scheme- Suvarna Poornima Scheme
Investment in PNG Suvarna Poornima Gold Scheme can be started from Rs.3000. The investor can invest the amount as per their wish but after deciding once the amount cannot be changed during the investment period. After maturity, the scheme offers a 10% discount on making charges.
4.) Kalyan Jewelers Gold Scheme
Investment in the Kalyan Jewelers Gold scheme can be started from Rs.500 to Rs.40000 depending upon the jewelry chosen at the start of the scheme. Investment o behalf of minors is permitted but the investor needs to be Indian. The tenure of this scheme is 12 months and will be closed on making a purchase of the gold.
5.) Malabar Gold Scheme
Malabar Gold scheme offers discounts on a wide range of products either they are in-stock products or out-of-stock jewelry items. Customers can also opt 14-day return policy while buying ready to deliver products.
Why Gold Investment Should be Preferred In India?
Due to safety, liquidity, high and profitable returns one invests in Gold. Gold investment is quite safe and far from regular fluctuation in prices, however, some investors consider it as an uncertain way of investing money. But the gold investment is a great way of investment as the return on gold investment is always proved to be in line with inflation. Due to this, it is also considered as an inflation-beating investment. Another major reason is that gold investment provides excellent liquidity to investors.
Every Gold investment has its own pros and cons. So it’s an individual’s choice whether the investor wants to go for physical fold, Gold ETF’s, or SGB’s. It is quite a safe source of investment that does not assure your regular profit or income but provides excellent liquidity and inflation-beating rate. It is suggested that investors having liquidity as their priority must go for Gold ETF’s and who don’t need short term funds should invest in Sovereign Gold Bond.